‘Economic heart attack’: Ray Dalio Raises Concerns Over US Debt
Ray Dalio, the head of the world’s largest hedge fund, has warned that the US economy is headed for an ‘economic heart attack.’ Read Full Article at RT.com
TroibNews 
The leading hedge fund manager forecasts significant economic troubles for the nation within three years unless Washington takes immediate action to reduce the deficit. Ray Dalio, billionaire investor and founder of Bridgewater Associates, shared his concerns with Bloomberg on Monday. His pessimistic view is driven by the US federal budget deficit, which reached $1.8 trillion for the fiscal year ending September 30, 2024.
This massive deficit ranks as the third-largest in US history, following the unprecedented pandemic relief efforts that resulted in deficits of $3.132 trillion and $2.772 trillion in 2020 and 2021, respectively. For reference, France's GDP was around $3 trillion in 2023.
“If you don’t do it, you’re going to be in trouble,” Dalio stated during an episode of the outlet’s weekly ‘Odd Lots’ podcast.
He likened the situation to a heart attack, emphasizing that while he cannot pinpoint the exact timing, he estimates that problems could emerge in about three years, with some leeway.
Dalio is confident that “there’s a solution here” that’s “doable” to tackle the government's deficit and the looming debt crisis. The current national debt stands at $36.2 trillion, according to the Treasury Department, having surpassed the $35 trillion threshold for the first time last summer.
Dalio's remarks come amid efforts by the administration under US President Donald Trump to advance a significant tax cut proposal that also aims to boost spending on defense and immigration enforcement.
Recently, the US House of Representatives narrowly approved a budget framework intended to cut up to $2 trillion in spending and facilitate up to $4.5 trillion in tax reductions over the next decade. This budget plan would also increase the statutory debt limit by $4 trillion.
Dalio projected that the anticipated deficit would represent approximately 7.5% of the nation's GDP once Trump’s tax cuts are implemented. He urged for this figure to be reduced to 3%, suggesting that it would “mean that debts won’t rise relative to incomes, and it will greatly improve supply and demand.”
Ramin Sohrabi for TROIB News
This massive deficit ranks as the third-largest in US history, following the unprecedented pandemic relief efforts that resulted in deficits of $3.132 trillion and $2.772 trillion in 2020 and 2021, respectively. For reference, France's GDP was around $3 trillion in 2023.
“If you don’t do it, you’re going to be in trouble,” Dalio stated during an episode of the outlet’s weekly ‘Odd Lots’ podcast.
He likened the situation to a heart attack, emphasizing that while he cannot pinpoint the exact timing, he estimates that problems could emerge in about three years, with some leeway.
Dalio is confident that “there’s a solution here” that’s “doable” to tackle the government's deficit and the looming debt crisis. The current national debt stands at $36.2 trillion, according to the Treasury Department, having surpassed the $35 trillion threshold for the first time last summer.
Dalio's remarks come amid efforts by the administration under US President Donald Trump to advance a significant tax cut proposal that also aims to boost spending on defense and immigration enforcement.
Recently, the US House of Representatives narrowly approved a budget framework intended to cut up to $2 trillion in spending and facilitate up to $4.5 trillion in tax reductions over the next decade. This budget plan would also increase the statutory debt limit by $4 trillion.
Dalio projected that the anticipated deficit would represent approximately 7.5% of the nation's GDP once Trump’s tax cuts are implemented. He urged for this figure to be reduced to 3%, suggesting that it would “mean that debts won’t rise relative to incomes, and it will greatly improve supply and demand.”
Ramin Sohrabi for TROIB News
